Matrimonial Home Designation: Spousal Property in Ontario

Many couples own more than one property, such as a house and a cottage. Which one counts as the matrimonial home matters because special rules apply to it, from possession to what happens at separation.

This article explains how a property becomes a matrimonial home, what designation adds, and how designation works when there are several properties.

What counts as a matrimonial home

A matrimonial home is any property in which a spouse has an interest and that is or was ordinarily occupied by the spouses as their family residence. If they have separated, this is judged at the time of separation. A couple can have more than one matrimonial home.

Owning shares in a corporation that give a right to occupy a housing unit counts as an interest in that unit. Whether a cottage or rental property qualifies depends on the facts, mainly whether it was ordinarily occupied as a family residence. A lawyer can help you assess that.

How designation works

One or both spouses may designate a property owned by one or both of them as a matrimonial home. The designation may include contiguous property and may be registered in the proper land registry office.

The effect on other properties depends on who signs. When a designation made by both spouses is registered, any other property that is a matrimonial home but is not designated by both spouses stops being a matrimonial home. Registering a designation made by only one spouse does not release other properties, which remain matrimonial homes if they meet the definition.

What being a matrimonial home changes

• Both spouses have an equal right to possession, whether or not their name is on title.
• A spouse generally cannot sell or mortgage an interest in it without the other spouse's consent, a release, a court order, or a registered designation of a different property.
• The court may order exclusive possession of it to one spouse.
• In property division, no date-of-marriage deduction is allowed for a property that is a matrimonial home, so its full value is shared even if one spouse owned it before the marriage.
• A gift or inheritance used to buy or pay down the family home loses its protection from sharing.

If only one spouse has an interest, the other spouse's right of possession is personal as against the owner and ends when they stop being spouses, unless a separation agreement or court order says otherwise.

When a designation ends

A designation is cancelled, and the property stops being a matrimonial home, when any of these occurs: a proper cancellation is registered, a divorce or nullity judgment is made, a court orders it, or a spouse's death is proven. If you are unsure whether a property is or remains a matrimonial home, the court may decide the question on application.

What to do next

• List every property either of you owns or has an interest in, and note whether the family lived there.
• Check the title record for any registered designation.
• Ask a lawyer how a designation, or a cancellation, would affect your other properties.
• Do not sign a designation or cancellation before getting advice.
• Keep in mind that unmarried partners are not covered by these rules.

Frequently asked questions